The State Bank of Pakistan (SBP) on Monday said during the first quarter of current fiscal year FY-20, Pakistan’s economy moved progressively along the adjustment path.
However, inflation reached the highest level during the last seven years in the SBP.
The central bank in its report said Pakistan’s economic growth was unlikely to meet the target of four per cent this fiscal.
It is due to soft trends in agriculture and manufacturing production.
The State Bank also advised the government to address structural vulnerabilities to put the economy on a sustainable growth trajectory.
Performance of commodity-producing sectors would likely remain subdued, the SBP said in its report.
“In view of these developments, achieving the real GDP growth target of four per cent appears unlikely,” the SBP said.
The central bank’s report spelt out in sharp detail the challenges being faced by the economy.
It includes mismatch related to exports quantum and earnings.
It causes delay in implementation of tax measures and weak management in food prices.
Furthermore, while the drawdown in foreign exchange reserves has been reversed.
The overall reserves position remains below the comfort level.
Earlier, The State Bank of Pakistan has received $1.2 billion from the Asian Development Bank (ADB) under the budget support fund.
According to the details, SBP on its official twitter handle confirmed the transfer of the loan amount to Pakistan.